Adani Group's market capitilisation (mcap) surged by Rs 3.14 lakh crore last week on the back of new renewable energy investments and reports of US International Development Finance Corporation (DFC) terming Hindenburg Research's allegations against the group irrelevant. This was the highest weekly rise recorded by the company in 2023.
The group's solid performance on the bourses came in a week which saw both benchmark indices Sensex and Nifty post record gains. The latter crossed the 21,000 mark on Friday. Notably, the bulls emerged victorious as BJP's win in three states boosted the possibility of policy continuity post the 2024 Lok Sabha Elections.
On the back of buoyed investor sentiment, several Adani Group firms attracted the attention of investors as all 10 stocks ended in green. Adani Green Energy gained over Rs 82,000 crore in its mcap amidst firm's renewables push. Flagship Adani Enterprises' mcap posted a gain of over Rs 52,000 crore, while Adani Ports saw a Rs 42,000 crore surge.
The strong performance in the last month of 2023 comes as a reprieve to the group and its investors after the Hindenburg report had wiped out over 50 per cent of its mcap. However, with US DFC reportedly dismissing the findings and funding the expansion of company's port business in Colombo, the negative sentiment around Adani Group's stocks seems to have abated. Amidst a bull run, the firm's mcap is inching closer to Rs 15 lakh crore after it closed at Rs 14,36,767 crore on Friday, a 28 per cent rise from the close of previous week.
